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While the prices of children’s favourite items increase, their pocket money has stagnated.
The average weekly pocket money a child received in the UK stood at £6.14 in 2021, according to RoosterMoney, a children’s banking company. In comparison, this figure was recorded four pence higher in 2020.
In addition, children seem to be saving more too, with the average child saving 39% of their pocket money last year. compared to the 37% recorded in 2020.
“Despite facing stagflation - caused in no small part by wage deflation for household chores - it’s clear that kids are as resourceful as ever,” said Will Carmichael, CEO of RoosterMoney.
The Natwest-owned bank stated that children have turned to “side hustles” to increase their purchasing power.
This includes selling their old possessions and churning out immaculate school reports in exchange for extra cash.
In fact, the average payout for a good school report rose from £8.15 in 2020 to £14.94 in 2021.
Despite this stagnation, the prices of several children’s favourite products are on the rise.
LEGO and PlayStation items, which appear on the top five of RoosterMoney’s “Most Saved For” list, have all seen price hikes over the past year, the banking company said.
For consumable items, crisps and soft drinks – which make up some of UK children’s favourite treats – have experienced price hikes in recent years. This research was made in conjunction with Kantar, which also stated that during the pandemic some leading cinema chains hiked their ticket prices by as much as 40%.
Although weekly pocket money has remained at a constant, the average birthday money given to children rose last year. During the COVID-19 pandemic, children received £34.81 on average for their birthdays in 2020. This contrasts with the recovery figure of £41.94 for 2021.
Significantly, this was the first year aunts and uncles outspent their grandparent counterparts on “special occasion handouts”. Grandparents gave an average of £15.22 in cash for special occasions such as birthdays or Christmas while aunts and uncles averaged £19.90.
As for the average earnings per age, four-year-olds earned average weekly pocket money at £3.21. This was only three pence less than their five-year-old counterparts.
The highest earners on this list were 14-year-old children, whose average weekly rate of £11.64 was £1.88 more than those aged 13.
This is according to RoosterMoney, who gathered this information through the responses of 65,000 children.
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